Don't Ignore The Insider Selling In Advanced Drainage Systems
Some Advanced Drainage Systems, Inc. (NYSE:WMS) shareholders may be a little concerned to see that the Chief Accounting Officer, Tim Makowski, recently sold a substantial US$731k worth of stock at a price of US$149 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Advanced Drainage Systems
Notably, that recent sale by Tim Makowski is the biggest insider sale of Advanced Drainage Systems shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$144. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Advanced Drainage Systems didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Advanced Drainage Systems
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Advanced Drainage Systems
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Advanced Drainage Systems insiders own about US$158m worth of shares (which is 1.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Advanced Drainage Systems Tell Us?
Insiders sold Advanced Drainage Systems shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Advanced Drainage Systems, you should check out this free report on analyst forecasts for the company.
But note: Advanced Drainage Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.